Restaurants Canada tabled its pre-budget submission to the Federal Finance Committee, calling for support to continue to help the foodservice industry weather the COVID-19 crisis.
"Many of the measures that the federal government has implemented in recent months have provided a lifeline for restaurants during this extraordinarily difficult period," notes David Lefebvre, Vice-President, Federal Affairs and Quebec, Restaurants Canada. But as the colder months approach, the restaurant industry will need continued support to continue to play its vital role in the Canadian economy. "
Recommendations for restarting Canada's essential foodservice sector
Not only was the restaurant industry one of the first and most affected by the COVID-19 pandemic, it will also be one of the slowest to recover.
While Statistics Canada's latest Labor Force Survey reveals that employment in the restaurant industry added 100,500 jobs in July, there are still more than 300,000 jobs in this sector since February. No other industry is grappling with such a deficit.
Faced with this reality, Restaurants Canada calls on the federal government to extend and strengthen support to food service companies in the following areas so that they can continue to contribute to the Canadian recovery in 2021.
1) Help with labor costs, rising debt and cash flow
The following programs are to be continued in 2021 to help foodservice businesses that continue to struggle to operate in the current restrictive climate:
Canada Emergency Wage Subsidy (UCSS)
Emergency Account for Canadian Businesses (CUEC)
These COVID-19 response measures have made a significant difference in the short term and must be maintained and strengthened to promote the continuation of business activities in the longer term.
Restaurants Canada also recommends changes to the tax system to help businesses experiencing cash flow problems. A simplified rent aid provided directly to businesses is also necessary.
2) Reduction of administrative formalities for SMEs
Restaurants Canada recommends that any new legislation or measure put on hold due to the COVID-19 pandemic be reassessed to take into account new economic realities for businesses.
Trade barriers need to be minimized as possible as SMEs continue to strive to stay in business despite the restrictions that persist.
3) Targeted support for the food service sector
Industry-specific measures are needed to address some of the unique challenges restaurants and other food service businesses have faced as a result of COVID-19. Restaurants Canada made a number of recommendations based on feedback from its members.
A thriving restaurant industry is critical to Canada's recovery from the COVID-19 pandemic
Restaurants and other food service companies are the fourth largest private sector employer and the primary source of first-time jobs for Canadians, normally employing 1.2 million workers.
Restaurants support a wide variety of businesses in the supply chain and in turn contribute more than 290,000 jobs.
Restaurants normally spend over $ 30 billion annually on food and beverages, playing a vital role for Canadian farmers and the entire agri-food sector.
